CoFTRA Issues Circular To Realize A Transparent Crypto Asset Ecosystem

JAKARTA - The Commodity Futures Trading Supervisory Agency (CoFTRA) issued the latest Circular (SE).

The SE is an affirmation to optimize the crypto asset ecosystem in the administration of physical market trading of crypto assets (crypto assets) on the Futures Exchange.

The SE in question is SE Number 47/BAPPEBTI/SE/03/2024 concerning the Implementation of the Implementation of the Physical Market Trading of Crypto Assets (Crypto Assets).

Plt. Head of CoFTRA Kasan said the presence of this SE was one of CoFTRA's efforts to boost the trading performance of crypto assets in Indonesia and create a transparent, effective, and efficient crypto asset ecosystem.

"The current crypto asset ecosystem is a representation of the spirit of the Indonesian government and with SE Number 47/BAPPEBTI/SE/03/2024, CoFTRA seeks to realize regular, reasonable, efficient, and able to support healthy business competition," he said in an official statement, Thursday, March 21.

In addition, continued Kasan, with the existence of this SE, it is hoped that the crypto asset ecosystem will strengthen the protection for customers or the public from illegal investments and at the same time provide certainty of doing business for crypto asset market players.

Kasan continued, efforts are being made so that the ecosystem runs in accordance with statutory regulations and can encourage transactions.

CoFTRA has formed a crypto asset ecosystem consisting of a crypto asset exchange, two crypto asset clearing institutions, and two depository institutions in 2023-2024.

Meanwhile, Head of the Legislation and Enforcement Bureau, Aldison, explained that the SE is one of the implementations of the CoFTRA regulations.

The regulation in question is the CoFTRA Regulation Number 8 of 2021 concerning Guidelines for the Implementation of Physical Market Trading for Crypto Assets (Crypto Assets) on the Futures Exchange as amended by the CoFTRA Regulation Number 13 of 2022 concerning Amendments to the CoFTRA Regulation Number 8 of 2021 concerning Guidelines for the Implementation of Physical Market Trading of Crypto Assets (Crypto Assets) on the Futures Exchange.

"This is an affirmation to business actors in the physical market trading sector of crypto assets that have obtained licensing from CoFTRA so that the physical market administration of crypto assets in Indonesia is one of the means of reliable and transparent commodity trading. Mainly, providing optimal protection for people who are customers of crypto assets," explained Aldison.

Aldison said that business actors who have received a registration sign as Candidates for Physical Crypto Asset Traders (CPFAK) from CoFTRA are expected to immediately submit a letter of approval as a Physical Crypto Asset Trader (PFAK) to CoFebti in accordance with the provisions of the legislation in the physical market sector of crypto assets.

"As a party with a strategic position in trading crypto assets, CPFAK must pay attention to the time limit to become PFAK and immediately comply with all the required provisions," said Aldison.

Crypto Asset Trading Momentum In Indonesia

On another occasion, Secretary of CoFTRA Olvy Andrianita said, 2024 is an important momentum for the administration of crypto asset trading in Indonesia.

This is in line with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) which is related to the authority to regulate and supervise crypto assets, which will switch from CoFTRA to the Financial Services Authority (OJK) in 2025.

Parallel with that, continued Olvy, CoFTRA and other stakeholders maintain the mandate of Law Number 10 of 2011 concerning Commodity Futures Trading.

"Currently, this is a crucial time related to the transfer of crypto asset authority from CoFTRA to OJK. CoFTRA wants to ensure that the transfer must go well without giving a shock to the crypto asset industry. One of them is by ensuring that the current crypto asset ecosystem has been running and encouraging the growth of the crypto asset industry in Indonesia," said Olvy.

Olvy added that 2024 is also important because it is estimated that the majority price of crypto assets will increase as the Bitcoin halving phenomenon encourages more stretched transactions.

All crypto asset institutions must immediately carry out their duties and functions. This is so that physical trading of crypto assets in Indonesia grows significantly. Don't let us lose the moment because more crypto asset transactions will occur this year," concluded Olvy.